If I had to make a short list of the dumbest policies that prevent the United States of America from reaching its full economic potential, one of the top spots would be dedicated to the self-destructive taxation on repatriated earnings that force wealth into the silos of other countries rather than permitting an efficient use of the capital back home here in America.
The New York Times points out the absurd games that companies play to avoid a 35% repatriation tax:
More than a trillion dollars in cash and short-term investments sits in offshore holding companies, awaiting a repatriation tax holiday. In the meantime, tax professionals spin out ways to manipulate the system.
The tax code provides multinationals based in the United States with many incentives to shift income to foreign low-tax jurisdictions. In theory, American corporations are taxed at 35 percent on their worldwide income. But income earned
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Since I was originally born in Dallas, I have always paid attention to economic trends in the Texas economy over time. Looking at some of the recent economic data, I can’t help but crack up as I see how much the members of my birth-country love to shovel all the wealth they get their hands on during the good years into bigger and bigger homes.
For Texans that belong to households earning in excess of $150,000 per year, the average home price is $387,211. The average mortgage debt is $328,000. Guess when the last time Texas mortgage values for the top 20% of earners was less than half the total mortgage amount? That’s right, 2005-2007, right before the financial crisis slammed down and Texas foreclosures among this high-earning group spiked from 4% to 12%. It was the only state in the union to suffer a double-digit foreclosure rate during the … Read the rest of this article!
Nike stock has been one of those few businesses
that is widely known by the public at large that continues to build incredible
amounts of wealth for its shareholders, even as it has become globally well
known and become a mega-cap stock. It’s been this bizarre wealth-building
engine, forever sitting in plain sight and known by sophisticated financiers
and schoolchildren alike, that has grown its profits at a rate in excess of 10%
during 31 of the past 39 years.
The company’s secret? The power of Nike’s intellectual
property, which has been honed through a massive advertising network of signing
prominent athletes to endorsement deals across all sports and generations to
advertising deals (such as Cristiano Ronaldo, Kobe Bryant, Kevin Durant, Maria
Sharapova, Roger Federer, Lebron James, Derek Jeter, Rory McIlroy, Rafael
Nadel, Tiger Woods, and Michael Jordan) and by simultaneously entering into
exclusive sponsorships with the teams themselves at … Read the rest of this article!